CRACKING A WHIP ON BLACK MONEY HOARDERS WITH DATA ANAYTICS

CRACKING A WHIP ON BLACK MONEY HOARDERS WITH DATA ANAYTICS

Tax officials are tightening up their ropes with improved Big Data analytics to crack a whip on hoarders of black money.

 

  • Under the bill for amending Section 115BBE of the Income Tax Act, transactions with unexplained deposits in banks will be taxed.
  • As per this amendment, tax officials can now tax people on such deposits at a rate of 60 percent (cess additional) as opposed to the previously determined 30 percent.
  • This new tax law is applicable from the 1st of April, starting this year!

 

Cracking a Whip on Black Money Hoarders With Data Anaytics

Cracking a Whip on Black Money Hoarders With Data Anaytics

How are the Income Tax officials leveraging Big Data Analytics to curb black money?

Here are the simple signals that showcase a rise of Big data analytics use and a more planned crack down on Black Money hoarding:

 

  1. The IT department is now increasingly becoming tech savvy, it is now making use of analytics tools to assess the personal bank deposits for an improved black money crack down action plan.
  2. The income tax officials are making use of Big Data analytics tools for the first time ever done in the history of the Indian economy, to further maintain a hawk’s eye affixed on the target of bringing down black money.
  3. This is a new venture and earlier such advanced tools were only employed on corporate tax assessments.

Why use data analytics?

Here are the reasons that such a major step in the Indian economy is so highly dependent on Big Data analytics:

 

  1. It is almost an impossible task for the tax officials to manually go through all the transactional data that are being retrieved from the banks. So, analytics tools are being employed to further take a look at the discrepancies.
  2. The next step would be taken by the tax officials which involves scrutinizing the suspicious cases.
  3. With the use of advanced Big Data analytics tools tax officials can better scan through tax returns that have been filed by companies and individuals, etc. In case they discover any irregularity, then these analytics tools will automatically raise a red flogs on the identified assesses. The tax officers can then issue notices to the individuals based on these information after the designated deadline of 31st December 2016.
  4. These analytics tools hold the secret to not just notify the amount of cash that are being deposited to the banks but also the total tax that has been paid by an individual as income tax over the years; and other taxes like corporate tax paid by his company, the number of employees each company has and whether they too have deposited money recently or not. Thus, in this way the whole history of the company owner and his employees will be available for scrutiny by the tax personnel.


Black Money in India Can be Traced With Ease by Applying Big Data Analytics

Big Data Analytics can make it bigger for the retail industry!

We also think in compliance to the industry insiders, that the future of the retail industry also lies in the hands of Big Data analytics. Based on things like customer loyalty data, their browsing patterns, their social media interactions, history of purchases and demographic on data, retailers can predict the trends and prepare for the future demands of their clients.

 

With the use of Big Data analytics retailers can now have the power of acquiring deeper understanding of customer’s product preferences and their buying habits. Therefore, they have easier options to provide their customers with a smarter shopping experience thereby, building better customer loyalty along with offers of seamless and superior category of customer experience.

 

The biggest growth driving forces in the form of industries that are further pushing developments in Big Data and analytics are the retail, telecommunications and banking. If we can harness the true power of Big Data analytics and can enable the companies to gather data for unearthing insights and then create proper predictive models based on them, then we can gain better insights and understanding of the customer behaviour and may help drive sales through the roof.

 

With effective utilization of the advantages offered by Big Data analytics organizations can be allowed to focus on the acquiring of better results and to offer an improved customer experience.

 

Large amounts of data upon mapping will be able to gain actionable insights on the demographic, analytical, operational, and transactional behaviours of the customers. retailers will be able to gain benefits by anticipating  the customer’s needs and optimizing the business opportunities thereby enabling themselves to mitigate risks and retain better the high net-worth. With being in sync to the customer’s needs further will allow the retailers to offer better personalized marketing solutions.

 

 

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